793.94111/72

Memorandum by the Adviser on Political Relations (Hornbeck)

The Chinese Ambassador called this morning at his own request.

The Ambassador opened the conversation with a statement to the effect that China was “disappointed” by and disturbed over the action which the American Government had taken (on September 14)28 in reference to carrying of arms, etc., by American ships, which action they regard as being harmful to China, and that he had come officially and formally to inform the Secretary of his Government’s “disappointment.”

The Secretary replied to the effect that this action on China’s part was astonishing. He said in effect that we were more greatly surprised that the Chinese should take this position than the Chinese were, as stated by the Ambassador, disappointed by the action which we had taken. He went on to explain at some length that we had taken action which amounted to only a small fraction of the action which would have been ours had we applied the Neutrality Act.

The Ambassador stated that there seemed to be more in our action than was apparent from the text of the President’s statement. He said that the Chinese were finding American firms unwilling to sell arms, etc., to them. He cited a report from a Chinese agent who has been doing business with the du Pont Company for some time past and who now, when trying to purchase TNT from the du Ponts, is told that they cannot sell it to him.

The Secretary said that we had taken no steps toward interfering with sale and purchase; that we had not told anyone not to sell; that the market remains open.

The Ambassador said that it nevertheless appeared that from somewhere in American official circles there had gone out word discouraging sale by American firms.

The Secretary recapitulated what he had already said and repeated that we had taken no action prohibiting or discouraging sales. [Page 532] He said that our action in prohibiting and discouraging carrying is directed only toward keeping American shipping from becoming involved in the presence of the Japanese blockade of the China coast29 and the ability of the Japanese Navy to interfere with attempts to carry arms into China ports.

The Ambassador said that when a friend suddenly pursues a course which injures his friend, the injured party cannot but feel that there is some deliberate intent. He repeated that his Government was greatly disappointed and concerned.

The Secretary inquired whether Mr. Hornbeck would wish to make any comment. Mr. Hornbeck stated that he found it difficult to understand at just what the Ambassador and his Government were directing the statements which the Ambassador had made. The Ambassador had communicated his Government’s message and was repeating and underscoring certain implications. He wondered what the Ambassador would have this Government do.

The Ambassador said that this led to a matter which was much on his mind. He said that the League had met, had received the Chinese Government’s approach, and was reconvening the Advisory Committee.30 The American Government has had a representation on that Committee. He hoped that the American Government would assist in the work of the Committee. The Secretary then said that we have not yet heard from the League on this subject but that if and when we hear from them we will give that matter consideration.

The Ambassador then said that 19 planes which the Chinese Government had purchased and which had been shipped by the S.S. Wichita had been removed from the Wichita at San Pedro. The Chinese Government owned these planes and now they were being withheld. He hoped that the American Government would assist toward making it possible for them to go to China. The Secretary said that shipping other than American is available.

The Ambassador then reverted to the question of the Advisory Committee, and the Secretary repeated that when the matter comes before us we will give it consideration.

The Ambassador rose to leave and the Secretary said that we are always glad to have him call.

The conversation there ended.

The Ambassador and Mr. Hornbeck proceeded together to the elevator. In the corridor, the Ambassador was intercepted by press correspondents who requested an account of the Ambassador’s conversation with the Secretary. The Ambassador said that he did not wish to make any statement.

S[tanley] K. H[ornbeck]